How to Start Your Start-Up

How to Start a Start-Up?

Do you know, that start-ups are a great way to build a big business? If you want to start your own start-up, you need to first understand three major start-up ideas, viz. new market, new benefit idea, and new technology. In other words, start-ups are mainly about inventing something new, for example,

You create a new market

You launch a new product or service

You create new technology

Here are a 7 steps plan to start a great start-up

Begin with a new idea, the idea might not be out of a world idea but could be a new concept in your local market.

Start-up is also a business; therefore, you need to create a business plan

Start-ups are normally a joint-venture, or partnership companies, therefore you need a team

Start-ups are normally funded by the founders, you need money

Start-ups should be registered (even if you plan to do everything online), and your company should have a legal status

Create your product or service

Build a marketing plan and start selling

If the start-up is geared towards helping the community, it might succeed at an early age. Actually, things like working for the community, helping the community, etc. are marketing strategies for the companies that give them free publicity. Let's say the start-up is launching its product by distributing the products to a community, there will be free media coverage

The Difference Between a Business and a Start-Up

A start-up is a company formed by entrepreneurs with an aim to become a million-dollar company, if not a billion-dollar company. Start-up wants to disrupt the existing market by growing very big. The primary idea behind the start-up is to create a product or service that adds value to the life of common people and in the meantime also generates revenue for the company. However, some start-ups are completely charitable, they are called social start-ups.

Businesses on the other hand are created for entrepreneurship and sell in the local market. Businesses are normally not concerned with the size of the company, they have no intention to grow on a large scale. 

Start-ups and businesses, mainly small businesses, are entirely different. The difference is based on the growth strategy and revenue generation. Start-ups are focused on rapid growth and top-end revenue generation. Businesses are mainly concerned with the sustainability of the company and remaining afloat in the market.

Different Kinds of Start-Up

A Start-Up is a business in its initial stage. A start-up is launched by two or more entrepreneurs with their own pocket money.

Whether you want to invest in start-ups or want to start up yourself, you need to understand different types of start-ups. Here are 6 major types of start-ups:

Buyable start-ups: These are the companies that are built in order to sell them to other companies. Youtube was sold to Google, Whatsapp was sold to Facebook, etc.

Lifestyle Start-ups: This is a company formed for self-employment purposes

Scalable start-ups: These are the start-ups that are looking forward to scaling themselves by seeking capital.

Small Business Start-ups: These starts-up are the business intended to remain small and serve the small market

Offshoot start-ups: These start-ups branch off from bigger companies.

Social start-ups: These start-ups are launched as no-profit companies.

These 6 types of start-ups are based on Steve Blank’s definition. Steve Blank is an author, educator, and entrepreneur, in the United States.

How to Make Your Start-Up Successful With OPM Strategy

Do you know what the common factors of all successful start-ups are? These start-ups use a strategy called OPM.

OPM is the abbreviation of Other People’s Money

Successful start-ups get money from

Angel Investors

Venture Capitalist

Common people through IPO

They use other people’s money in their business and become successful.

Generally speaking, there are two major benefits of OPM.

When you fund your project through a bank loan, you will have to pay interest. It does not matter whether you are successful or not, you will have to pay interest every month, for many years. However, when you use investors' money your investors will not only bear profits but also losses.

When you fund your start-ups through burrowed money, you will have to return the money. Lenders will never care whether you are doing good or not. However, when you get money from investors, you do not have to return the money even when you encounter a loss.